Reddit is a social media company built on user-created communities. On July 30, 2026, it announced its quarterly earnings. The company reported results that surpassed analyst expectations for both earnings and revenue, showing strong performance for the second quarter.
Reddit announced an earnings per share (EPS) of $1.25, which is over 31% higher than the analyst consensus estimate of $0.95. As highlighted by CNBC, this translates to a net income of $253 million. This is a significant increase from the $89 million reported in the same period last year.
The company also posted strong revenue of $804.91 million for the quarter, beating the expected $730.26 million. This marks a 61% jump in sales compared to the previous year. According to WSJ, this revenue growth is fueled by an expanding user base, which in turn attracts more advertising spending.
Key operational metrics support this growth. Daily Active Uniques (DAUq), which measures daily user engagement, rose 18% to 130.3 million. Weekly Active Uniques (WAUq) also grew 24% to 514.6 million. These figures are important as they show advertisers a large and growing audience.
Despite these strong results, Reddit shares fell 7%. This reaction followed a company statement about "choppy" search referrals, causing concern over its reliance on Google. However, the company maintains a strong financial position with a low Debt-to-Equity ratio of 0.0064 and a high current ratio of 10.49.
